Housing Sales in India Rise 7% to Record High in 2024
Housing sales in India saw a significant 7% annual rise in 2024, reaching a 12-year high of 3,50,613 units across eight major cities. This surge can be attributed to increasing demand for premium homes, stable mortgage rates, and strong economic growth, according to Knight Frank’s report. However, Anarock, another real estate consultant, reported a 4% decline in sales, with nearly 4.6 lakh units sold across seven cities.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted that housing sales were largely driven by homes priced between Rs 2-5 crore. Cities like Hyderabad and Pune achieved all-time highs, while Mumbai recorded its highest sales figures in 13 years.
Premium Segment Fuels Growth in Housing Sales in India
The premiumisation trend played a critical role in boosting housing sales in India. Homes priced in the Rs 2-5 crore range saw an impressive 85% year-on-year growth. While demand in the premium segment thrived, lower-priced categories, such as those under Rs 50 lakh and between Rs 50 lakh and Rs 1 crore, witnessed a decline or stagnation in sales.
According to Baijal, the residential market has been on an upward trajectory since 2020, culminating in record-breaking housing sales in India in 2024. He emphasized that the market’s shift toward premium homes aligns with evolving consumer preferences, focusing on lifestyle upgrades and better amenities.
City-Wise Breakdown of Housing Sales in India in 2024
- Mumbai: Housing sales grew by 11%, reaching 96,187 units.
- Hyderabad: Sales rose by 12%, totaling 36,974 units.
- Pune: A 6% increase in sales brought the total to 52,346 units.
- Bengaluru: Sales increased by 2%, with 55,362 units sold.
- Ahmedabad: Residential sales grew by 15%, reaching 18,462 units.
- Kolkata: Recorded a 16% rise in sales, reaching 17,389 units.
- Chennai: Sales rose 9%, totaling 16,238 units.
On the flip side, Delhi-NCR was the only region to experience a decline in housing sales, with a 4% drop to 57,654 units compared to 2023.
The Future of India’s Residential Market
Despite the decline in the sub-Rs 1 crore category, momentum in the premium housing market remains strong. According to Gulam Zia, Senior Executive Director at Knight Frank India, the market continues to thrive due to steady price growth, increasing private sector interest, and government support for affordable housing. The trend of premiumisation shows no signs of slowing, as homebuyers demand larger, more luxurious properties that reflect a higher standard of living. Developers are responding to these evolving preferences, aligning their offerings with both affordability and aspirational lifestyles.
With favorable economic conditions and a stable interest rate environment, the Indian residential market is poised for continued growth in 2025, driven by strong demand for premium homes and lifestyle-oriented living spaces.
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